Orphan stocks is a colloquial term for stocks that analysts and investors seem to disregard.
How it works (Example):
Orphan stocks are stocks that investors and analysts tend to ignore. Also known as wallflowers, orphan stocks usually are not outstanding market performers, but occasionally the reasons for a stock being called an orphan stock may not be apparent.
Why it Matters:
Value investors sometimes exclusively search for orphan stocks. Because their stock prices have not been overblown by investor demand, orphan stocks often have low P/E ratios, which many investors see as an indicator for solid long-term returns.
InvestingAnswers is the only financial reference guide you’ll ever need. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.
We provide the most comprehensive and highest quality financial dictionary on the planet, plus thousands of articles, handy calculators, and answers to common financial questions -- all 100% free of charge.
Each month, more than 1 million visitors in 223 countries across the globe turn to InvestingAnswers.com as a trusted source of valuable information.